The analysis by AGCS -  Product Recall: Managing The Impact of the New Risk Landscape -  found that recalls cause both financial and safety risks with losses having cost insurers more than $2bn over the last five years. They undermine the public’s trust of a product, interrupt sales and business development, and increase the risk of litigation, the report added. 

Significant product recalls

The report from Allianz Global Corporate & Specialty (AGCS) suggested that significant product recalls - the Samsung Galaxy Note 7 which had exploding batteries last year, the faulty Takata airbags that impacted at least 19 auto manufacturers and more than 60 million vehicles in 2015 -  are collectively believed to have cost some $34 billion.

Areas for improvement

Christof Bentele, head of global crisis management at AGCS, said: 'Product recalls have risen steadily in the past decade.' She cited a number of areas for improvement - tougher regulation and harsher penalties, the rise of large multinational corporations and complex global supply chains, growing consumer awareness' and even the rise in social media as some of the contributing factors to the increase in recalls.